England got off to the perfect start as Raheem Sterling chased a through ball into the box where he was caught by Iceland keeper Hannes Thor Halldorsson resulting in a penalty.
With just four minutes played, Wayne Rooney slotted the ball home from the spot to give England the lead.
But it lasted barely two minutes as Iceland came storming back with an equaliser on six minutes following a set-piece routine that ended with Ragnar Sigurdsson sliding home from close range.
England were shaken and soon trailing to the so-called minnows of the tournament.
There was poor marking as Iceland attacked and too much space afforded to the men in navy blue and Kolbeinn Sigthorsson, with a clear sight of goal, sent a low shot under Joe Hart’s despairing dive.
England came close a couple of times before the break through Harry Kane, but Iceland looked fairly comfortable going into the break.
Sterling was sacrificed for Jamie Vardy ten minutes after the re-start but it was Iceland who almost increased their lead with Hart beating out a spectacular overhead kick from Ragnar Sigurdsson from point-blank range.
Thereafter England had most of the possession but lacked creativity and looked visibly drained of confidence.
Hart was forced to beat away another late chance as Iceland looked to catch England on the break.
With Iceland defending superbly, England just ran out of ideas and jeers rang out as the final whistle put Roy Hodgson’s men out of their misery – and out of Euro 2016.
